Challenges of the European Model Customs Code and the Association Agreement with the European Union

Abstract

Georgia’s new Customs Code, which came into force on June 28, 2019, is a direct response to the Association Agreement and the fundamental provisions of the European Union Customs Code. In the currently applicable Customs Code, we can identify the following key aspects and characteristics essential to customs legislation: it allows for a systematic focus on institutional and structural issues.

Institutional challenges include: customs policy, international customs integration, customs authorities, the movement of goods across Georgia’s customs borders, state control and supervision, special customs procedures applied to goods, the management of customs formalities (SES-ESN production), the core law enforcement segment, and more.

As we can see, the Customs Code reflects a wide spectrum of issues, areas of focus, and functional responsibilities inherent to the operations of customs authorities, as well as the involvement of institutions, organizations, and both natural and legal persons in the customs sphere. These provisions and norms form the foundation of customs law.

Similarly to the EU Customs Code, Georgia’s Customs Code introduces the concept of risk management in the implementation of customs procedures. This means that the Revenue Service, upon the crossing of Georgia’s customs border within control zones, is not required to inspect every item that passes through. Instead, it should select targets based on their relevance to economic concerns, security, public health, intellectual property, and related areas.